Does the processing center call the banks first to verify funds before creating an ACH transaction for Electronic Check Recovery?
Yes, but only after it has been run through the system a second time via ACH. If the check is returned after second presentation, the processing center will call and verify funds from that point forward before attempting to ACH the account a third and final time. Also, they wait and send the fee through only after the check amount is verified as being available. This avoids having both items being returned and the customer charged for it.
Related Questions
- Does the processing center call the banks first to verify funds before creating an ACH transaction for Electronic Check Recovery?
- For Banks, Are Accounts that Hold Funds out of Which Electronic Money is Redeemed Subject to Reserve Requirements?
- Are there special rules or transaction fees for Electronic Funds Transfers from my account?
